Investing in Startups, Indonesia Impact Fund Aims to Raise US$ 25 Million

APEC Business Advisory Council (ABAC) Indonesia is raising funds under management with a target of US$ 25 million through the Indonesia Impact Fund (IIF). Later, the funds raised will be invested in startups or startups that have a social and environmental impact.

Chairman of ABAC Indonesia, Anindya N. Bakrie, said that the environmental and social impacts referred to refer to the five goals in the sustainable development goals (SDG). Namely, poverty alleviation, affordable health services, quality, and accessible education, increased women’s participation, as well as sustainable cities and affordable housing.

“The Indonesia Impact Fund is complementary, in terms of size (funding), maybe the amount is not too big, but the SDG impact will be very large,” said Anindya in a press conference of ABAC Indonesia which was broadcast virtually, Thursday (19/11 / 2020).

To raise the targeted managed funds, IIF has partnered with Mandiri Capital as the fund manager. The appointment is inseparable from the company’s history in the field of startup investment.

Targeting Both Domestic and Foreign Investors

CEO of Mandiri Capital, Eddi Danusaputro, said that the managed fund collection targets domestic and foreign investors. Several attempts were made. To partner with investors from Singapore, for example, Mandiri Capital has coordinated with Mandiri Investment Management Pte. Ltd. which already has a license to attract investors from abroad.

According to Eddi, efforts to raise funds will be carried out in stages through several phases. “We have come close. First close, maybe around the second quarter of next year. So for example, we could get US$ 10 million in the second quarter of 2021, the rest in the fourth quarter of 2021. So we closed several times until we collected the AUM that we targeted, “said Eddi at the same event.

Furthermore, Eddi explained, fundraising activities would be carried out simultaneously with efforts to find prospective start-up companies that would be the target of a fund injection. In this way, Mandiri Capital hopes to realize investments in stages when the managed funds start to accumulate.

“We don’t have to wait to invest all of these AUMs are collected. So in the third quarter of 2021, we have collected, maybe the first close, we can immediately invest, “added Eddi.

Currently, Eddi claims to have pocketed several names of start-up companies that are potential targets for injection targets. Unfortunately, he was reluctant to specify the names of the startup companies in question.

Meanwhile, a member of ABAC Indonesia, Shinta W. Kamdani said that IIF does not target certain business sectors/fields. According to him, the selection of a start-up company is more focused on the aspects of the social-environmental impacts that are owned/generated from the company’s business model.

In addition, he also revealed that the investment target will also be more. “We also want to prioritize startups that have great potential and impact, but are facing difficulties in obtaining financing,” added Shinta.

Will be Distributed to 5 Main Sectors

For information, the injection of funds will be channeled into 5 main sectors, namely poverty alleviation, affordable healthcare, high-quality & accessible education, increased economic women, and sustainable cities.

There are several names cited as examples, such as the Halodoc and Klik Dokter telemedicine platforms, agriculture and fisheries platforms such as TaniHub and e-Fishery, and educational platforms such as Ruang Guru. But that doesn’t mean the startup will get an injection of funds.

Initiators still need to assess the impact of startups on society more deeply. Currently, the initiator is preparing a framework that will be used to measure impact. Chairman of ABAC, Anindya Bakrie, said that the Indonesia Impact Fund was not as big as the Sovereign Wealth Fund. The possibility is only 30-50 million US dollars, equivalent to Rp 710 billion.

“If we can organize it well, we can become examples or templates that can be implemented by other countries. Even the two countries that are looking to participate while studying are Singapore and Taiwan,” said Anin.